Recently, the news of more than half of the layoffs of domestic star VR companies has been endless. In this regard, Storm Mirror quickly said that the company is only doing business splits, there is no large-scale layoffs.

According to the top of the Storm Mirror, the company now has about 500 employees. In the near future, more than 100 employees related to VR content have been spun off into other subsidiaries. The actual number of layoffs is about 50, accounting for about 10% of all employees. It belongs to the normal elimination of the Internet company.

However, this clarification has not reversed the attitude of the outside world on the decline of the domestic VR market.

Storm Mirror Box Layoffs Where is the mobile VR box manufacturer going?

Experience is flawed, domestic mobile VR box is difficult to "take the big beam"

The industry divides VR devices into general VR, mobile VR boxes and VR all-in-ones.

Among them, the general VR is represented by HTC Vive, Oculus Rift, PlayStaTIon VR, etc., and needs an external PC or game console; the mobile VR box is represented by Google Cardboard, Samsung Gear VR, Huawei VR, and the smart phone is used as the screen and computer of VR; The VR all-in-one refers to the VR device with built-in screen and arithmetic unit.

Storm Mirror

â–² Mobile VR box (Source: Jinglian Electronics)

In the domestic VR market, mobile VR boxes are mainstream, for two reasons:

Compared with the general VR, the mobile VR box is free from the constraints of the cable and more free. In addition, in terms of cost, the VR box has advantages over the general VR and all-in-one, and is suitable for the initial promotion of the market.

After the launch of the Google Cardboard solution, domestic VR entrepreneurs found shortcuts, so VR boxes like Cardboard are constantly being launched in the market, causing the phenomenon of mobile VR boxes.

However, from the experience point of view, mobile phone VR box is not enough to "take the lead" in the VR market. On the one hand, when the VR box is in use, it will inevitably encounter short messages or phone calls, and the experience is unfriendly.

On the other hand, VR box performance is related to smartphone performance. Unfortunately, smart phones with extremely powerful configurations can only bring a little bit of experience improvement to VR boxes. This change does not allow it to compete with general VR equipment.

The market is retiring, how can domestic VR play in the future?

2016 is coming to an end. The spectacle of the VR market is not expected to happen this year. On the contrary, after the frenzied investment in 2015, the capital market has become rational for VR investment.

According to research institute data, at the end of 2015, the global VR financing scale grew rapidly by nearly 900 million yuan, which is higher than the sum of the previous three quarters. However, by the first quarter of 2016, the amount of VR financing fell again to 816 million. Take the Chinese market as an example. In the first quarter of this year, 18 VR startups in China received financing, compared with only 4 in the second quarter. In addition, in some individual projects, there has been a phenomenon of capital withdrawal.

At the same time, the profits of domestic VR manufacturers have also declined. Recently, the media visited Shenzhen Huaqiang North VR box market and reported that in September and October of 2015, it was the golden period for the development of VR box manufacturers. At that time, the profit of each product was above 100%, the demand for products was in short supply, and the current profit margin is less than 10%. .

According to industry analysis, the VR box experience is not good. After the consumer's freshness feels, the product will be oversupplied, which ultimately affects the profitability of VR manufacturers.

The difficult development of the mobile phone VR box is evident. With the increasingly harsh living environment, domestic VR vendors are in urgent need of transformation. Generally, VR has a strong sense of experience. However, under the general trend of the mobile Internet, it is difficult to become the mainstream of the market. Therefore, the VR all-in-one will become a new way for domestic VR vendors.

VR integrated machine is widely used, and it still faces pain points such as cost, heat dissipation, vertigo (inherent defects of VR equipment), and needs to be solved by VR manufacturers.

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